Wrightson makes bid for 19.9 percent of Genesis

By NZPA

Wednesday 5th March 2003

Rural services company Wrightson Ltd is seeking a 19.9 percent stake in biotech researcher Genesis Research and Development.

Broker UBS Warburg said today it was seeking a maximum of 19.9 percent of Genesis, or a maximum of 5.199 million shares and a minimum of 1.039 million shares.

The offer of $1.31 per share was a 35 percent premium on Genesis' closing price yesterday of 97c. The company's shares hit a record low of 90c on February 25, after reaching $8.48 when it listed in September 2000.

UBS Warburg said the stand, open until 3pm tomorrow, was conditional on achieving a 19.9 percent stake.

Wrightson managing director Allan Freeth said in a statement the bid was a natural extension of the companies' partnership since they formed a forage grass biotechnology joint venture in 2000.

"If the bid, which involves an investment of approximately $7 million, is successful, Wrightson's balance sheet will remain very strong, and the investment will have no impact on the dividend payable to Wrightson shareholders," Dr Freeth said.

Wrightson had no current plans to increase its shareholding in Genesis above 19.9 percent.

Wrightson shares closed yesterday at $1.10.

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